Lake Street Capital Markets has reiterated its Buy rating and $9 price target for Safe Pro Group Inc. (NASDAQ: SPAI), citing accelerating revenue momentum through 2026 and 2027. In an institutional equity research report dated January 5, 2026, analyst Max Michaelis highlighted growing investor recognition of opportunities both in Ukraine and across broader defense and commercial markets.
The report emphasizes Safe Pro's positioning in the Ukrainian landmine detection market, estimating a total revenue opportunity of approximately $2.5 billion. This estimate is based on roughly 14 million hectares of mined land and an estimated $175 per hectare pricing model. The company's patented AI platform, capable of detecting more than 150 types of explosive threats from drone imagery, is viewed as significantly faster and safer than manual demining methods. This technology could translate into large-scale contracts through partnerships with the Ukrainian government, the United Nations Development Program, and Norwegian People's Aid.
Michaelis also underscored the strategic collaboration with Red Cat Holdings to integrate Safe Pro's AI into drone platforms used in U.S. Army programs. This partnership is estimated to represent a $130 million to $175 million revenue opportunity, with further upside as drone adoption scales. The Ukraine demining market and Red Cat collaboration together represent multihundred-million-dollar opportunities for the company.
Lake Street expects margin expansion as Safe Pro's revenue shifts toward higher-margin AI software and cloud-based services. The firm projects consolidated gross margin of 57.5% in 2026 and 70% in 2027, with adjusted EBITDA breakeven anticipated in 2027. This expanding mix of AI software and services is expected to drive gross margin expansion and support the company's path to profitability.
Safe Pro Group is positioned for a strong inflection in revenue growth as its collaboration with Red Cat Holdings ramps through 2026 and into 2027. The company's technology platform, built on a cloud-based ecosystem and powered by Amazon Web Services (AWS), targets multiple markets including commercial, government, law enforcement and humanitarian sectors. For more information on Safe Pro Group Inc., please visit https://safeprogroup.com/.
The latest news and updates relating to SPAI are available in the company's newsroom at http://ibn.fm/SPAI. This analysis comes as defense technology companies increasingly leverage artificial intelligence for humanitarian and security applications, creating new market opportunities while addressing critical global safety challenges.
